Gold Rises Amid Uncertainty Over U.S. Tariffs and Increased Safe-Haven Demand

On Tuesday, February 18, gold prices continued to climb as uncertainty surrounding U.S. President Donald Trump's tariff policies fueled demand for the metal as a safe haven, amid growing concerns about a potential global trade war.

Spot gold rose by 0.6% to $2,914.75 per ounce as of 0537 GMT, while U.S. gold futures gained 0.9% to reach $2,927.90 per ounce.

The increase in gold prices is attributed to significant central bank purchases and potential shortages in Europe, driven by heightened demand for gold in the U.S. to avoid possible tariffs. The bullish trend for gold is expected to continue, supported by strong market fundamentals.

Since taking office last month, Trump has implemented a 10% tariff on Chinese imports, announced and postponed 25% tariffs on goods from Mexico and non-energy imports from Canada, set a date for 25% tariffs on imported steel and aluminum, and is planning reciprocal tariffs on countries taxing U.S. imports.

Meanwhile, Goldman Sachs raised its gold price forecast to $3,100 per ounce by the end of 2025, up from its previous estimate of $2,890 per ounce, citing structurally higher central bank demand.